What is the meaning of 'Area Developer' in the Face Foundrie Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
spect to the style of the facilities and signs used by these Face Foundrié Facial Bars and has successfully established a reputation, demand and goodwill for their services and products; and
WHEREAS, Area Developer recognizes the value and benefits that can be derived from utilizing the System and being associated with Franchisor, the Marks and the other distinctive features of the System, and desires to obtain certain development rights to open and operate Face Foundrié Facial Bars under the System and the Marks, as well as to receive other assistance provided by Franchisor in connection therewith.
NOW, THEREFORE, for and in consideration of the covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows:
1. GRANT
1.1 Grant and Acceptance. Franchisor grants development rights to Area Developer, and Area Developer undertakes the obligation, pursuant to the terms and conditions of this Agreement, to develop no less than the number of Face Foundrié Facial Bars (the "Franchised Facial Bars") as set forth in Exhibit A to this Agreement. In this regard, the parties further agree that:
- 1.1.1 Each Franchised Facial Bar developed hereunder shall be operated pursuant to a separate Face Foundrié Franchise Agreement with Franchisor (a "Franchise Agreement") that shall be executed as provided in Section 3.4 below.
- 1.1.2 For each Franchised Facial Bar to be developed under this Agreement, Area Developer shall execute the Franchise Agreement for such Franchised Facial Bar in accordance with the deadlines set forth in the development schedule specified in Paragraph 1 of Exhibit A to this Agreement (the "Development Schedule").
1.1.3 Each Franchised Facial Bar developed hereunder shall be at a specific location, which shall be designated in the Franchise Agreement, that is within in the area described in Paragraph 2 of Exhibit A to this Agreement (the "Development Area"). If a "TBD" (to be determined) search area has been designated in Paragraph 2 of Exhibit A, Area Developer hereby authorizes Franchisor to designate the Development Area and complete Exhibit A subsequent to execution of this Agreement upon Franchisor approval of Area Developer's proposed territory. Until Franchisor has so designated a Development Area, Area Developer will not have any rights to a protected territory.
1.2 Development Area*.* Except as otherwise set forth herein (including, without limitation, the rights retained by Franchisor as described in Section 1.3), during the term of this Agreement, and so long as Area Developer is in compliance with its obligations under this Agreement and all of the Franchise Agreements between Area Developer (including any affiliate of Area Developer), Franchisor shall not establish or operate, or license anyone other than Area Developer to establish or operate, a Face Foundrié Facial Bar under the Marks and System at any location that is within the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, an Area Developer is granted development rights and is obligated to develop a specific number of Face Foundrie Facial Bars, as outlined in Exhibit A of the Area Development Agreement. Each Facial Bar must be operated under a separate Face Foundrie Franchise Agreement. The Area Developer is required to adhere to a development schedule and establish each Franchised Facial Bar at a location within the designated Development Area, as specified in Exhibit A.
The Area Developer undertakes the responsibility to develop a predetermined number of Face Foundrie locations within a specific territory. This agreement stipulates that each location will operate under its own separate franchise agreement, ensuring compliance with Face Foundrie's standards and operational procedures. The Area Developer is bound by a development schedule, meaning they must open locations according to an agreed-upon timeline.
The agreement also addresses territorial rights, stating that until Face Foundrie designates a Development Area, the Area Developer does not have rights to a protected territory. Face Foundrie retains specific rights, including the ability to operate or franchise other businesses within the Development Area under certain conditions. This includes existing Face Foundrie locations or businesses acquired by Face Foundrie that may operate independently or be converted to Face Foundrie Facial Bars.
The Area Developer must designate an Operating Partner, subject to Face Foundrie's approval, who owns at least 20% of the Area Developer entity and is responsible for overseeing the development and operations of the Franchised Facial Bars. This Operating Partner serves as the key contact and decision-maker for Face Foundrie regarding the Area Developer's business. The Area Developer is also responsible for providing regular reports and financial statements to Face Foundrie, adhering to the franchisor's prescribed formats and accounting standards.